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Dáil Éireann debate -
Thursday, 3 Oct 1996

Vol. 469 No. 4

Written Answers. - Changes in Duty Free Regulations.

Ben Briscoe

Question:

64 Mr. Briscoe asked the Minister for Transport, Energy and Communications the preparations, if any, he has made to allow for the changes in duty free regulations in 1999; the discussions, if any, he has had with Aer Lingus in this regard; his views on whether the acquisition of a 40 per cent stake in Birmingham International Airport by Aer Rianta is sound in view of that airport's high dependence on duty free revenue; and if he will make a statement on the matter. [17598/96]

EU Council Directives 91/680/EEC and 92/12/EEC, as adopted by the Council of Finance Ministers, authorise the continuation until 30 June 1999 of duty free and tax free sales to travellers between EU member states.

I share the concern of the airport companies, the airlines and the shipping companies about the possible effects of the abolition of intra-Community duty free sales. Nevertheless, I am anxious that they should take whatever prudent measures they consider necessary to offset any loss of income should there be no further extension of such sales after mid-1999.

There have been continuing contacts between my Department and Aer Rianta about the proposed purchase of a 40 per cent stake in Birmingham International Airport. I understand that the profitability of that airport is not dependent to any great extent on duty free and tax free sales. The greater part of the airport's income comes from airport charges. In the circumstances, the possible loss of duty free and tax free sales will not be a significant factor in the final decision on the purchase.
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